The Capital Investment Subsidy Scheme aims to promote the development of cold storage facilities for horticulture produce. This initiative is designed to encourage the construction, expansion, and modernization of cold storage units, including those with controlled atmosphere (CA) technology. Here, we’ll explore the components, eligible infrastructure, capacity, cost norms, and technical standards of this scheme.
Capital Investment subsidy scheme for construction/expansion/ modernization of cold storage and storages for Horticulture Produce.
a) Components: Credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and their modernization are eligible for assistance under this component.
b) Infrastructure/Activity and Crops eligible:
a. Assistance for setting up of new Cold Storage infrastructure will be available only to Multi-Chamber cold Storage units with technologies which are energy efficient with provision of thermal insulation, humidity controlled, advance cooling systems, automation, etc, having specification and standards approved by the Ministry. To ensure, compliance of notified standards, all projects will be subjected to technical scrutiny by NHB empaneled Technical appraisal agency.
b. In case of CA Stores, projects of temperate fruit crops located in production areas for which to NHB protocols are available, are only are allowed.
c) Capacity and Pattern of Assistance: – The assistance will be given as subsidy @ 35% of the capital cost of project in general areas and 50% in case of NE, Hilly States & Scheduled Areas for a storage capacity above 5000 MT up to 10000 MT.
In case of North East states, projects with a capacity of 1000 MT or above are also eligible for application and consideration.
d) Calculation of Capacity for subsidy:- For calculation of capacity, 3.4 cubic meters (cum.) (120 cubic feet (cft.) of chamber volume shall be considered equivalent to 1 MT storage capacity.
e) Cost Norms:
| S. N. | Description | Cost Norms |
| 1 | Cold storage units Type 1 – basic mezzanine structure with large chamber (of > 250 MT) type with single temperature zone. |
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| 2 | Cold storage units Type 2 – Pre Engineering Building (PEB) Type for multiple temperature and product use , more than 6 chambers of <250 MT) and basic material handling equipment |
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| 3 | Cold Storage Units Type 2 with add on technology for Controlled Atmosphere.
CA stores are considered only in production areas for crops / commodities having NHB technical standards |
Additional Rs. 10,000/MT for add on components of controlled atmosphere technology as per component wise cost. |
| 4 | Technology induction and modernization of cold-chain |
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1. Technology Add on for CA and Modernization (Subject to maximum of Rs.5.00 crores for CA equipment and Rs.2.50 Crore for modernization).
| S. No. | Item | Description | Admissible Cost |
| A. | Add-on Technology for CA | ||
| i | CA Generator* | Inclusive of sensors, pressure equalizing equipment, controls | Rs. 1.25 crore per unit, maximum 2 generators |
| ii | Specialised CA Doors* | Add-on specialization to storage doors for positive pressure chambers. | Rs. 2.5 lac per door, maximum 20 doors |
| iii | CA Tents# | Low cost enclosure of polyethylene PVC, mylar or other impermeable body | As per original invoice, maximum 5 enclosures |
| iv | Programmed Logic Controller (PLC) equipment#@ | Electronic and electrical logic controls for machinery & equipment. | 50% of cost as per original invoice, maximum Rs 10 lakh |
| v | Dock Levelers#@ | In existing or new storages | Max Rs. 7 lakh per unit, max 5 units |
| B. | Modernization | ||
| i | Warehouse Development & Regulatory Authority (WDRA) / Negotiable Warehouse Receipt (NWR) system, equipment#@ | Computers and printers & software for use with NWR of WDRA | 100% of cost as per original invoice, maximum Rs. 2 lakh |
| ii | Specialized Packaging# | Automated packaging lines for fruits & vegetables with farm code labeling | 100% of cost as per invoice, maximum Rs. 15 lakh per project |
| iii | High Reach Material Handling Equipment (MHE)*@ | Specialized material Handling equipment | Rs. 17 lakh per unit, for max 2 units. |
| iv | Dock Levelers | In existing or new storages | Max Rs. 7 lakh per unit, max 5 units |
| v | Modernization of refrigeration@ | For upgrading of evaporator system, compressor system | 50% of cost as per original invoice, maximum Rs. 100 lakh @ Rs. 2500/MT |
| vi | Modernization of insulation@ | For repair or modernizing of cold chamber insulation | 50% of cost as per original invoice, maximum Rs.100 lakh @ Rs. 1500/MT |
| vii | Reefer Container# | Reefer container for use on existing chassis trailers | Max Rs. 6 lakh per 9MT (20 foot container) |
| Viii | Advanced Grader*#@ | Computerized, Optical Grading Lines | 100% of cost as per original invoice, max Rs. 75 lakh per line |
| ix | Stacking system*#@ | Racking system Bins, Pallets |
100% of invoice cost, max Rs 2000/MT |
| x | Retail Shelf# | Temperature controlled retail cabinets | Maximum Rs. 10 lakhs per establishment |
| xi | Alternate Technology#@ | Vapour Absorption, Phase change material, Solar PV panels or Solar Thermal sys | 100% of cost as per invoice, maximum Rs. 35 lakhs per project |
Components categorization : * CA Add- ONS:# Other Add-ons: and @ Modernization
Maximum permissible subsidy shall be subject to original invoices and in no case more than Rs. 7.50 crore, whichever is lower. For add-on technology, subsidy shall be provided as credit linked back ended at 35% of the capital cost.
Technology offers inherent value for operators and the admissible cost norms are designed to incentivize induction and not to serve as venture funding.
Any other components as maybe decided by Technical Committee when new technology or items that reduce carbon footprints are introduced. For individual unit components like insulation, graders, CA generator, solar panels – NCCD shall publish guidelines for use by appraising agency.
6.Technical Standards and Protocols : Project should strictly comply with the prescribed NCCD Technical standards and protocols, else the project is not eligible for any financial assistance. The standards and protocols may be accessed at the following link.
Technical standards prescribed by NCCD
NHB Protocols (Only to the extent of protocols with regard to standards, these supersede by NCCD Standards):
a) Protocols for the CS-Type-1 for fresh horticulture produce not requiring pre-cooling before storage:
b) Protocols for the CS-Type-2 for fresh horticulture produce requiring pre-cooling before storage:
c) Protocols for the CA Stores/ Type-3:
d) Protocols for Fruit ripening chamber:
Download NHB/HD/Guidelines/2022-23/9234 Dated: March 9, 2023
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